Sonoco Products Co. Enters Material Definitive Agreement
Ticker: SON · Form: 8-K · Filed: Sep 16, 2024 · CIK: 91767
Sentiment: neutral
Topics: material-agreement, financial-obligation
Related Tickers: SON
TL;DR
SON just signed a big new financial deal, details to come.
AI Summary
On September 16, 2024, Sonoco Products Company (SON) entered into a Material Definitive Agreement related to a direct financial obligation. The filing does not specify the counterparty or the exact nature of the obligation, but it indicates a significant financial commitment for the company.
Why It Matters
This filing signals a new material financial obligation for Sonoco Products Co., which could impact its financial structure and future investments.
Risk Assessment
Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risk or opportunity that is not yet fully detailed.
Key Players & Entities
- Sonoco Products Company (company) — Registrant
- September 16, 2024 (date) — Date of earliest event reported
FAQ
What is the nature of the Material Definitive Agreement?
The filing states that Sonoco Products Company entered into a Material Definitive Agreement, but the specific details of the agreement are not provided in this current report.
What is the direct financial obligation mentioned?
The filing indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, but the specifics of this obligation are not detailed.
Who is the counterparty to this agreement?
The filing does not disclose the name of the other party involved in the Material Definitive Agreement.
What is the dollar amount associated with this financial obligation?
The filing does not specify any dollar amounts related to the Material Definitive Agreement or the financial obligation.
When was this agreement entered into?
The agreement was entered into on September 16, 2024, which is the date of the earliest event reported.
Filing Stats: 1,193 words · 5 min read · ~4 pages · Grade level 13.8 · Accepted 2024-09-16 06:02:27
Key Financial Figures
- $1.2 billion — ed from the commitments for an intended $1.2 billion credit agreement previously announced b
- $1.5 billion — ompany with the ability to borrow up to $1.5 billion on an unsecured basis (the "364-Day Ter
- $4 billion — acility in an aggregate amount of up to $4 billion previously described in the Company's C
- $1.8 billion — a result, an aggregate amount of up to $1.8 billion in bridge facility commitments remain.
Filing Documents
- tm2424099d1_8k.htm (8-K) — 31KB
- tm2424099d1_ex10-1.htm (EX-10.1) — 750KB
- 0001104659-24-099931.txt ( ) — 1108KB
- son-20240916.xsd (EX-101.SCH) — 3KB
- son-20240916_lab.xml (EX-101.LAB) — 33KB
- son-20240916_pre.xml (EX-101.PRE) — 22KB
- tm2424099d1_8k_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On September 16, 2024, Sonoco Products Company (the "Company") entered into a credit agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (the "364-Day Term Credit Agreement"). The 364-Day Term Credit Agreement, which was upsized from the commitments for an intended $1.2 billion credit agreement previously announced by the Company on September 13, 2024, provides the Company with the ability to borrow up to $1.5 billion on an unsecured basis (the "364-Day Term Loan Facility") to finance a portion of the cash consideration for the Company's pending acquisition of Titan Holdings I B.V., a private limited liability company ( besloten vennootschap met beperkte aansprakelijkheid ) incorporated under the laws of the Netherlands (the "Eviosys Acquisition"). Funding of the 364-Day Term Loan Facility is expected to take place substantially concurrently with the closing of the Eviosys Acquisition. The aggregate amount of the commitments under the 364-Day Term Credit Agreement have replaced a corresponding amount of the commitments in respect of the 364-day senior unsecured bridge term loan facility in an aggregate amount of up to $4 billion previously described in the Company's Current Report on Form 8-K filed on June 24, 2024, in accordance with the terms of the bridge facility commitment letter. As a result, an aggregate amount of up to $1.8 billion in bridge facility commitments remain. Borrowings under the 364-Day Term Loan Facility, net of any prepayments, will become payable in full on the date that is 364 days after the Funding Date (as defined in the 364-Day Term Credit Agreement) (or if such date is not a business day, the next preceding business day). Borrowings under the 364-Day Term Loan Facility will bear interest at a fluctuating rate per annum equal to, at the Company's option, (i) the forward-looking Secured Overnight Financing Rate term rate (such borrowings, "T
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 10.1* 364-Day Term Credit Agreement, dated as of September 16, 2024, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). * Certain schedules and attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide, on a supplemental basis, a copy of any omitted schedules and attachments to the Securities and Exchange Commission or its staff upon request. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SONOCO PRODUCTS COMPANY Date: September 16, 2024 By: /s/ Robert R. Dillard Robert R. Dillard Chief Financial Officer